Chapter 18: Organizational Change and Development

1. Understanding And Managing Organizational Behavior 4th Edition Chapter 18:Organizational Change and Development JENNIFER GEORGE & GARETH JONES

2. Chapter Objectives • Appreciate the forces that lead to organization change and the various impediments to change that arise during the change process • Distinguish between evolutionary and revolutionary change and identify the main types of each of these kinds of change processes

3. Chapter Objectives • Discuss the main steps involved in action research and identify the main issues that must be addressed to manage the change process effectively • Understand the process of organization development and how to use various change techniques to facilitate the change process

4. Opening Case: Toyota is a Master at Managing Change • Why is change important at Toyota?

5. What is Organizational Change? • Movement of an organization away from its present state and toward some desired future state to increase its effectiveness • Reengineering • TQM • Innovation • Restructuring

6. Forces for Change Competitive Economic and political Global Demographic and social Ethical Impediments Power and conflict Differences in functional orientation Mechanistic structure Organizational culture Group norms Uncertainty/ insecurity Habit Table 18.1 Forces for and Impediments to Change

7. Lewin’s Force-Field Theory of Change • Forces resist change • Forces push change • Performance levels • P1 = Balance • P2 • Increase forces for change, • reduce forces for change, or • both

8. Categories of Change • Evolutionary Change: Change that is gradual, incremental, and narrowly focused. • Revolutionary Change: Change that is rapid, dramatic, and broadly focused.

9. Instruments of Evolutionary Change • Socio-technical systems theory • Total quality management

10. Instruments of Revolutionary Change • Reengineering • Restructuring • Innovation

11. Figure 18.2 Lewin’s Three Step Change Process • Unfreeze • Change • Refreeze

12. Managing Change: Action Research A strategy for generating and acquiring knowledge that managers can use to define an organization’s desired future state and to plan a change program that allows the organization to reach that state

13. Figure 18.3 Steps in Action Research • Diagnosing organization • Determining desired state • Implementing action • Evaluating action • Institutionalizing action research

14. Implementing Action • Identify possible impediments to change • Decide who will be responsible • External change agents • Internal change agents • Decide specific change strategy

15. External Outside consultants who are experts at managing change Internal Managers from within the organization who are knowledgeable about the situation Change Agents

16. Top-down Implemented by managers at a high-level in organization Result of radical restructuring and reengineering More resistance Bottom-up Implemented by employees at low levels and rises over time All levels involved in change process Less resistance Types of Change

17. Organization Development A series of techniques and methods that managers can use in their action research program to increase the adaptability of their organization.

18. OD Techniques to Deal with Resistance to Change • Education and Communication • Participation and Empowerment • Facilitation • Bargaining and Negotiation • Manipulation • Coercion

19. OD Techniques to Promote Change • Counseling • Sensitivity Training • Process Consultation • Team Building • Intergroup Training • Total Organizational Interventions